Chamberlain Company wants to issue new 16-year bonds for some much-needed expansion projects. The company currently has 7.4 percent coupon bonds on the market that sell for $865.69, make semiannual payments, and mature in 16 years. What coupon rate should the company set on its new bonds if it wants them to sell at par? Assume a par value of $1,000.

• 4.50%

• 8.90%

• 9.00%

• 9.30%

• 8.70%